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An all-equity company has the following year-end market value balance sheet: Excess cash Other assets $400,000 $3,600,000 $0 Debt Equity $4,000,000 (80,000 shares at
An all-equity company has the following year-end market value balance sheet: Excess cash Other assets $400,000 $3,600,000 $0 Debt Equity $4,000,000 (80,000 shares at $50 per share) Total $4,000,000 Total $4,000,000 The firm is considering the following alternative uses of excess cash: Alternative 1: Pay out cash dividends. Alternative 2: Repurchase its own stock.
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Financial statements
Authors: Stephen Barrad
5th Edition
978-007802531, 9780324186383, 032418638X
